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Assessment of Rehabilitation of Livelihoods in Earthquake ffected Yogyakarta and Central Java, May 2007

Livelihoods

The two JRF financed projects to restore livelihoods aim to support livelihood recovery in the affected areas in Yogyakarta and Central Java based on assessment of gaps and needs identification.

Livelihoods projects were developed to meet needs identified by the GoI Action Plan developed by Bappenas and more recent assessments conducted by both UNDP and JRF.

JRF solicited Project Concept Notes (PCN) to:
  • Enhance access to finance linked to technical assistance for micro and small enterprises;
  • Support earthquake affected defaulting lenders to develop effective strategies for viable enterprises; and
  • Establish a soft loan mechanism to rehabilitate damaged medium-sized business infrastructure and capital equipment.
In June 2008, the JRF Steering Committee endorsed GTZ and IOM to implement two projects aim at the restoration of micro, small, medium enterprises by addressing the main barriers to recovery. The projects started its implementation shortly after.

Livelihoods projects were designed by both project implementers based on governments and community needs, building on their expertise and experience from projects already on the ground. Table below presents a summary of the projects. The IOM project with five components and the GTZ project with three components, have significant focus on access to finance. This was an area identified where support is most needed to enable SME to return to their full capacity. Both projects have coordinated closely to develop very similar design of this component, where MSE would receive credit through financial intermediaries. Both implementers have technical assistance targeted for improved access to finance based on their expertise and on-going projects – GTZ targeting financial intermediaries and IOM targeting mostly MSE’s. In addition, IOM is also focusing on MSEs directly by replacing assets or infrastructure, while GTZ also focuses on assisting MSEs in restructuring their loans with Rural Banks (BPR) and medium sized enterprises in restoring capacity and improving competitiveness.
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